Cheiron targets 70M cubic feet of natural gas daily from West Burullus concession by July
Updated 12/23/2024 8:29:00 AM
Arab Finance: Cheiron is seeking to produce 70 million cubic feet of natural gas per day from Egypt’s West Burullus concession in the Mediterranean by July, an unnamed government official told Asharq Business.
The company has initiated drilling its first well in the area as part of a broader plan to develop seven wells targeting natural gas and condensate production.
By the end of 2025, the total production capacity from the project is expected to reach 150 million cubic feet per day.
Cheiron acquired exploration rights in the West Burullus area from French company Engie in 2017 and later obtained Shell’s assets in the Western Desert in 2021.
Currently, Cheiron produces around 150,000 barrels of oil equivalent per day, with oil accounting for 60,000 to 70,000 barrels, largely from its operations in the Western Desert and the Gulf of Suez.
The official further stated that Cheiron has reached a commercial agreement with Shell to use its production facilities in the West Burullus area, which is expected to reduce production costs for Cheiron while providing a financial return for Shell.
The initiative aligns with the Egyptian government’s efforts to increase natural gas supplies to meet rising electricity demands during the summer peak months.
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